Is NewMarket Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NewMarket Corp. has moved from very expensive to attractive, indicating a shift in perception towards the stock's value. Based on the current metrics, NewMarket Corp. appears to be undervalued. The P/E ratio stands at 13, significantly lower than the peer average of 16.30, while the EV to EBITDA ratio of 9.55 also compares favorably against the peer average of 11.85. Additionally, the PEG ratio of 0.59 suggests that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, Avantor, Inc. has a P/E of 11.82 and ChampionX Corp. has a P/E of 15.52, both of which reinforce the attractiveness of NewMarket Corp.'s valuation. Despite recent underperformance against the S&P 500 over the past week and month, with returns of -1.36% and -7.02% respectively, the year-to-date and one-year returns of 46.30% and 46.17% highlight the stock's strong performance relative to the index, suggesting that it may still hold significant upside potential.